In this video, John Paul takes a moment from one of the live classes to take a live trade. It was a short E-mini trade on August 13, 2014 at around 11:50 a.m. with an entry price of 1944.00. The profit target was one point at 1943.00. The pivot stop was two ticks above the pivot (not the entry) at 1945.75. If the profit target was touched but not filled, John Paul would have moved the stop loss to allow for a break-even trade. When starting off with any of our methods, it’s important to paper trade until you feel comfortable, then move on to one contract and see how well you do in real markets. Practice goes a long way. The Stair Step method is also discussed lightly. When fully applied, this strategy will help you identify and manage trades when price is trending in an upward or downward zigzag pattern. On such days, it can be difficult to determine if price has just become stagnant, within a range or if it’s expected to keep breaking new highs or lows. To learn more about the Stair Step and the method John Paul used in this live trade, click the Power Price Action link above.
Here’s a recording of the webinar conducted on August 15, 2014.
• Atlas Line plotting live
• What causes the Atlas Line’s signals to plot
• How the Atlas Line can provide an overall direction or bias (long or short)
• How the BarTimer is used to time entries
• Identifying breakouts using week-based charts
• How to handle breakouts to reduce risk and identify entries
• Behaviors of most traders vs price action
• Trading the news for recent days
• Applying the ABC for recent days
• A look at the TF, YM, 6A, and 6E charts
• Best times of the day to trade
For August 12, 2014 on the E-mini (ES) market, the Trade Scalper software produced a Short signal on 1930.50 at about 10:47 a.m. Note the Trade Scalper uses 1-min charts, so each candle represents one minute. Markets love to test where they’ve previously been. This trade uses a three tick profit target with a six tick stop. John Paul keep an eye on the ATR to make sure the market can produce three ticks. Price first tags the profit target and eventually passes through it. A second trade appears at 10:49 a.m. with the 1930 Short signal. There’s enough volatility for another three ticks. When to take two or three ticks of profit target? If the ATR is above .5 points go for two ticks, if above one 1 point, go for 3 ticks. Continue in the video and you’ll see this Short trade become profitable as well as another Short at 11:02 a.m. A Long trade at 11:32 a.m. also hits the profit target.
With purchase of the Trade Scalper, you fully learn the underlying method in order to trade without the signals. It can be used for any fast-moving market with 1-min charts. In addition, our Mentorship Program that begins on September 4, 2014 will cover this method and every other through eight weeks of live trading with John Paul. Click here to find out more about Mentorship.
Here’s an update to last week’s video where John Paul said to watch out for a potential E-mini breakout. There’s been a lot of talk about a forthcoming reversal in the market. Load up a 1-week chart in your platform of choice and look for the large red candle for the first week of August. Based on this weekly movement, many institutional traders, trading advisers and individual traders likely went short. The following week, the market went down a bit more, came back up and closed as a doji candle. There was no confirmation whether the market wants to go higher or lower. We’ve started a new week here on August 15, so the currently plotting bullish candle may be a sign that the market will go up and test the most recent “high area” of 1978. The market may turn around on a dime and drop later today, next week, etc., but watch what happens if price hits the 1978 level.
The Trade Scalper software for NinjaTrader will plot entry signals on your NinjaTrader charts. As you can see, two entry signals were already plotted for this August 5, 2014 trading day on the E-mini S&P 500: a Short at 1925 and a Long at 1928.25. Small triangles accompany the entry price to help identify the opportunity. Note that when you purchase the Trade Scalper, you will be able to see its horizontal and vertical lines that further help guide your trading by letting you know when an entry is about to take place.
The Trade Scalper uses a 1-min chart and can work with nearly any type of futures or currency market. The strategy is completely taught in it’s entirety. It’s completely mechanical and objective. No conventional indicators are used. When scalping the markets, you’re not looking for big profits. Look for two to three ticks each time, for a limited amount of time. The Average True Range (ATR) guides the profit target. In this case, three ticks is the goal. The stop is in place to keep him in the trade because as you know, the market can easily change direction, plot against you, then change its mind to your favor. With 11 contracts and the three tick profit target, a $412.50 profit is made within a few minutes. Within the ideal trading time of 9:30 a.m. to noon, US/Eastern, the Trade Scalper can produce over 10 trades. You might not take each one of them. The goal is to minimize and maximize reward.
John Paul takes a look at a weekly E-mini chart, showing October of 2012 to the current week. For the last two years, the market has shown a bullish trend. Is a reversal now on the way? John Paul does not have a crystal ball. Instead, he offers solid advice: beware of false breakouts. False breakouts are market activity that lure traders in one direction, only to reverse against their trades. It seems as though the E-mini produces a false breakout condition every two to three months. For the week of August 1, 2014, the chart shows a large, red candle, indicating a false breakout could be occurring. If this is indeed a false breakout, watch for the market to test the previous high. It may be too early to consider this the long-term bearish trend traders have been expecting.
A new Group Private Mentorship class begins September 4, 2014. Eight weeks of live training with John Paul will teach you everything you need to know to successfully trade futures and currencies. All courses and software are included with lifetime licenses. This new session has classes twice each week.
We expect this new session to fill up quickly. It’s a good idea to reserve your seat as soon as possible.
Remember, group training includes:
• Eight weeks of live training with DTTW founder John Paul
• Each training session is recorded for future playback reference
• All courses and software with lifetime licenses and digital books
• In total, 11 unique methods to trade price action are taught – unlike anything you’ve traded before
• Training goes above and beyond the written material
• Look at each day’s activity and ask questions to improve your understanding with expert insight
On July 30, 2014, the Atlas Line produced a short trade around 10:00 a.m. US/Eastern with an entry price of 1967.25. Many Pullback and Strength trades occurred, which provided additional opportunities to the short side.
In the July 31 portion, you can see how a typical E-mini morning session begins while using the Atlas Line At around 10:00 a.m. US/Eastern, a second consecutive bar closed below the Atlas Line, generating a Short signal at 1950. Using NinjaTrader’s ATM Strategy area, John Paul defines the profit target and stop loss before the trade is placed. The profit target is always based on current market conditions. In this case, the ATR (with a Period setting of 4) shows a value of 3.4, which is rounded down to the nearest whole tick value, being 3.25 (remember that the E-mini works in .25 tick increments). This is a big trade – 3.25 points. The three stop strategies he uses work to minimize risk. Fortunately, the profit target was quickly reached. Two Strength trade signals appeared, which provided another entry. John Paul was happy with the $1,950 in profit trading 12 contracts, so he opted not to continue further.
The Atlas Line consists of the plotting line, Dbl Bar Long and Dbl Bar Short signals, and any small S (Strength Trade) and P (Pullback Trade) marks you see on the chart. These indications are plotted automatically. All you have to do to configure the Atlas Line is supply the market open time and the signals are then generated.
On July 17, 2014, two consecutive bars close above the plotting Atlas Line to generate a Long (or buy) signal at 1973.75. Notice the Atlas Line plotting as a dashed, pink line behind the large green candle. John Paul places a limit order at the closing price of the second bar above the Atlas Line, which is the entry price of 1973.75. He advises never to chase the market for a higher entry, as that will lead to smaller profits and the market possibly turning against you. The order is then filled. Notice the stop loss is rather large – this is a catastrophic stop, which acts as a safety net in case price unexpectedly decides to take off against the anticipated market direction. In most cases, this catastrophic stop is never hit – if the profit target is not hit, one of the lesser stop losses is usually hit, such as the prove-it stop, time-based stop, or pivot-stop. For all Atlas Line trades, the ATR (Average True Range) is used to calculate the profit target. The ATR provides a realistic value of volatility and what can be achieved in terms of potential profit. As shown, this first trade is good for over 1.5 points of profit. A short trade was produced about an hour later as a result of two consecutive closing bars below the Atlas Line. The signal as generated at 1968. This would have been an excellent trade.
1. Coach needs to be a good teacher – Having someone who is personable and can communicate ideas effectively is super important. John Paul has years of experience teaching traders using a live webinar format. His explanations are clear and concise. You are free to ask questions whenever you want and go over previously taught concepts that may still be challenging. Remember, what Mentorship offers is an educational experience – it’s not a trading room. We want you to become a professional trader who can engage with the markets successfully on your own.
2. Coach needs to be accessible – Individual Mentorship can be customized to your availability and time zone. John Paul answers emails from students directly, before, during, and after the eight week coaching program. We occasionally have students from Australia or other countries where the 3:00 p.m. US/Eastern Group Mentorship time is inconvenient. They love being able to access the video recordings on demand and following up with email questions. As a Mentorship student, you can email John Paul your trading questions at any time.
3. Proof of success – What are people saying about the Program? How are the reviews? Does the website offer any testimonials from real traders who partook in the education? We have a full testimonial page with over 16 video testimonials from traders who have taken our courses. And below the videos, you’ll see many written testimonials. We’ve had hundreds of students who have taken our courses. We know they’re still trading our methods because they email us to update their software licenses years after their original date of purchase. In addition, we have over three years of Atlas Line trades posted on our recent trades page.
4. Training materials need to be easy to understand – Does the website provide any indication of what the courses will be like? Are they designed for beginners or more advanced students? Day Trade to Win’s courses are full of easy-to-understand explanations and charts. We know day trading education can be intimidating, so we try our best to lower the learning curve. With the Mentorship Program, you receive courses for the ATO, Price Action Scalping, and Trade Scalper. These strategies are also taught in the live training in addition to other strategies that are live-training only. Being able to ask questions and see why a trade setup occurs greatly improves understanding. Remember that all of the live training is conducted using the most recent data (current day and recent days). This way, you can get an idea of how the market is currently playing out.
5. Practice environment required – Does the coaching program offer any sort of practice environment? You’re going to need to test what you’ve learned on the markets. At Day Trade to Win, we provide access to the NinjaTrader platform, the same platform John Paul uses. We also provide live data feeds for free upon request, so you are able to trade just like you would with real money. Remember, the only time you have to pay for NinjaTrader is when you want to trade live with real money. At that point, you fund a brokerage account and pay for a live NinjaTrader license. Up until then, there’s no cost to hone your skills.
6. Affordability – Can you afford to take the Program? Education is an investment. If you jumped in to the markets without an idea of what you’re doing, the market will have its way with your finances. It’s better to be fully prepared and be armed with strategies that have been proven and tested for years. Losses from mistakes and guessing can easily surpass the costs of a proper education. With Mentorship, the cost is less than purchasing all of our courses separately. We also split the payment three ways. With the deposit, you are able to get the first week’s course right away.
7. Assistance getting setup with trading materials – Many of our students had never traded before finding us. In fact, a large portion of our students are not the best when it comes to computers. That’s why we provide remote assistance. Upon request, we can log in to your computer and help you get set up with NinjaTrader and our courses and software. You’ll be able to practice trading in no time without any frustration or obstacles. Support is also offered after the eight weeks of training are over.
8. Ability to track progress – We offer the ability to practice in a simulated (paper) trading environment until you’re ready to fund an account with a broker. Since you’re getting into trading to actually trade money, you obviously will need a way to track your results. You’ll need a positive indication before investing into trading further. For each simulated trade you place, the NinjaTrader platform logs everything about the trade. Using NinjaTrader’s Account Performance tab, you can get instant statistical feedback on consistency, profit, loss, and overall totals.
9. Video training – Does the program offer training videos? It’s important to be able to see visual explanations and examples. We record each Mentorship training session and upload it to your personal account. You can log in and play back Mentorship training sessions at your own leisure. If a concept is a bit difficult for you, play back that portion of the video over again. We have these videos up within a few hours of each class, in most cases.
10. Integration with the charting platform – Day trading is about looking at charts and applying learned strategies. For many of the methods taught in our Mentorship Program, we have indicators programmed for NinjaTrader. Unlike other trading educators, we do not give you a ton of confusing indicators and have you blindly trade them. In fact, you do not need to use these indicators to trade since you fully learn each method. However, these indicators are great in ensuring your understanding. For example, the Trade Scalper indicator provides entry signals. You can manually find the same entries and check if they are correct by comparing with the Trade Scalper’s automated signals.
The next Group Mentorship Program begins July 8, 2014. Classes will be Tuesdays and Thursdays from 3 p.m. to 4 p.m. EDT (UTC-4). Click here to enroll.
Individual Mentorship can begin at almost any time. Send us an email at [email protected] with your availability.